What are the Service Lifecycle in ITIL Foundation V3? ITIL Course

Service Lifecycle

Approach

The Service Lifecycle is an organizing framework that provides control between various functions and processes and how they inter-related with one another. The lifecycle acts as a guideline on how the organization’s lifecycle work and where functions and processes belong within and across the lifecycle.

Focus on a Service Lifecycle

The concept of the Service Lifecycle is fundamental to the refresh of ITIL® 2011 Edition. Previously in ITIL® v2, the focus of ITIL® was on the processes.

As a result of this previous focus on processes, version 2 of the ITIL® Framework provided best practices for ITSM and addressed the HOW questions. These included:

• How should we design for availability, capacity and continuity of services?

• How can we respond to and manage incidents, problems and known errors?

ITIL® now focuses on the WHY questions as well. These include:

• Why does a customer need this service?

• Why should the customer purchase services from us?

• Why should we provide (x) levels of availability capacity and continuity?

By first asking the WHY questions it enables a service provider to provide overall “strategic objectives” for the IT organization, which will then be used to direct HOW services are “designed, transitioned, supported and improved” in order to deliver maximum value to customers and stakeholders.

Stages

The Service Lifecycle may be viewed as a phased lifecycle, where phases are:

• Defining strategy for the IT Service Management (SS)

• Design the services to support the strategy (SD)

• Implement the services in order to meet the designed requirements (ST)

• Support the services managing the operational activities (SO)

• The interaction between phases are managed through the Continual Service

Improvement (CSI) approach, which is responsible for measuring and improving service and process maturity levels

The phases are further described as:

• Service Strategy

ƒ Defining strategy for the IT Service Management and defining strategies for the IT Services that are being provided.

ƒ The goal of Service Strategy is to specify the strategic objectives, direct and develop policies and plans, and allocate resources to achieve the organization’s objectives.

• Service Design

ƒ Design the services to support the strategy

ƒ The goal of Service Design is to design new or changed Services, by ensuring that there will be minimal issues that arise during the service lifecycle.

• Service Transition

ƒ Implement the services in order to meet the designed requirements

ƒ The goal of Service Transition is to introduce new services with appropriate balance of speed, cost, safety and focus.

• Service Operation

ƒ Support the services managing the operational activities

ƒ The goal of Service Operation is to carry out day-to-day operations and activities of Services.

• Continual Service Improvement

ƒ Implement and support improvement efforts on the services for better quality of services.

ƒ The goal of Continual Service Improvement is to align and realign IT services to changing Business needs.

Value Creation

The service lifecycle approach is an organizing framework designed for sustainable performance. The service lifecycle demonstrates values in terms of
“business contribution” and “profit”.

Business contribution is the ability of an IT organization to support a business process; managing the IT service at the requested performance.

Profit is the ability to manage cost of service in relation to the business revenue, also seen as ‘Return on Investment’ (ROI).

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Service Lifecycle in ITIL Foundation V3 – ITIL Course

Introduction

In ITIL V3, the Service Lifecycle provides a structured approach to managing IT services throughout their entire life, from inception to retirement.

The lifecycle ensures services deliver value to customers while aligning with business objectives. It emphasizes continual improvement, efficiency, and effective resource utilization.

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The 5 Stages of the ITIL Service Lifecycle

ITIL V3 divides the service lifecycle into five stages, each with its processes, objectives, and deliverables:

Lifecycle Stage	Purpose	Key Processes	Outcome / Focus
1. Service Strategy (SS)	Define strategy and direction for IT services	Service Portfolio Management, Financial Management, Demand Management	Ensures services align with business goals, prioritize investments, and provide value
2. Service Design (SD)	Design new or modified services	Service Level Management, Capacity Management, Availability Management, IT Service Continuity Management, Supplier Management, Information Security Management	Provides well-designed services that meet business requirements
3. Service Transition (ST)	Build, test, and deploy services	Change Management, Release & Deployment Management, Service Asset & Configuration Management, Knowledge Management	Ensures smooth transition from design to live environment, reducing risks
4. Service Operation (SO)	Manage services in production	Incident Management, Problem Management, Event Management, Request Fulfillment, Access Management	Delivers stable, reliable service and resolves user issues efficiently
5. Continual Service Improvement (CSI)	Identify and implement service improvements	CSI Process (seven-step improvement process)	Ensures services evolve and improve over time, increasing business value

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Overview of Each Lifecycle Stage

1. Service Strategy (SS)

Focus: Understanding business needs and planning IT investments
Key activities: Market analysis, financial planning, service portfolio management
Example: Deciding which IT services will be offered to generate ROI

2. Service Design (SD)

Focus: Designing services and processes to meet business requirements
Key activities: SLAs definition, capacity planning, security design, availability planning
Example: Designing a cloud-based email service with 99.9% uptime and proper security

3. Service Transition (ST)

Focus: Building and deploying services efficiently and safely
Key activities: Change management, testing, configuration management, knowledge management
Example: Rolling out a new HR system without disrupting ongoing operations

4. Service Operation (SO)

Focus: Day-to-day management of IT services
Key activities: Incident resolution, problem investigation, access control, event monitoring
Example: Service Desk resolving user login issues or system errors

5. Continual Service Improvement (CSI)

Focus: Improving services and processes continually
Key activities: Measuring KPIs, identifying gaps, implementing improvements
Example: Analyzing incident trends and implementing automated monitoring to reduce downtime

Benefits of ITIL Service Lifecycle

Benefit	Description
Business Alignment	IT services support business goals and objectives
Service Consistency	Standardized approach ensures predictable and reliable services
Risk Reduction	Proper planning and transitions minimize service disruption
Value Optimization	Focuses on ROI and efficiency in IT service delivery
Continual Improvement	Services evolve based on feedback, metrics, and changing business needs

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Key Points to Remember

Key Concept	Explanation
Lifecycle Approach	ITIL divides service management into five stages: SS, SD, ST, SO, CSI
Service Strategy	Focuses on planning and investment decisions
Service Design	Ensures services are designed to meet requirements
Service Transition	Focuses on risk-free deployment of services
Service Operation	Ensures services are delivered and supported efficiently
Continual Service Improvement	Focuses on measuring and improving services

Top 5 FAQs for ITIL V3 Exam

FAQ	Answer
What is the ITIL Service Lifecycle?	A structured framework to manage IT services from inception to retirement.
How many stages are in the ITIL V3 Service Lifecycle?	Five stages: Service Strategy, Service Design, Service Transition, Service Operation, Continual Service Improvement.
Which stage ensures smooth deployment of services?	Service Transition
Which stage focuses on daily service delivery and incident resolution?	Service Operation
What is the purpose of Continual Service Improvement?	To measure, evaluate, and improve services and processes continuously.

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5 Interview Questions and Answers

Q: What are the five stages of the ITIL V3 Service Lifecycle?
A: Service Strategy, Service Design, Service Transition, Service Operation, Continual Service Improvement.
Q: Which stage focuses on aligning IT with business goals?
A: Service Strategy.
Q: What is the main goal of Service Design?
A: To design IT services and processes that meet business requirements efficiently.
Q: How does Continual Service Improvement add value?
A: By measuring service performance, identifying gaps, and implementing improvements for higher efficiency and customer satisfaction.
Q: Can you give an example of a process in Service Operation?
A: Incident Management, which ensures rapid resolution of user issues.

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